HomeMy WebLinkAbout2.e. Policy ReviewAGENDA ITEM: Policy Review
AGENDA SECTION:
PREPARED BY: Dawn Weitzel, Assistant City
Administrator
AGEt 2
ATTACHMENTS: 1) Draft Policy Travel and Conference
Reimbursement
2) Draft Policy City Credit Card
APPROVED BY:
RECOMMENDED ACTION: Discussion
4 ROSEMOUNT
CITY COUNCIL
City Council Work Session: April 12, 2006
EXECUTIVE SUMMARY
ISSUE
Consider the attached Travel and Conference Reimbursement and City Credit Card policies.
BACKGROUND
In December Council approved the Elected Official Out -Of -State Travel Policy incorporating language
required for compliance with Minnesota State Statutes. As part of the process in December, staff
indicated that the City's policy regarding travel reimbursement had not been updated for many years. At
this point, Senior Staff, City Attorney and Auditors have reviewed the attached policies.
Travel and Conference Reimbursement Pohcy: The purpose of this policy is to provide guidelines and
procedures to be used when employees are reimbursed for travel or conference /workshop /framing
expenses. It includes a six-tier per diem rate system established by the General Services Admirustrati.on
(GSA) and guidance regarding lodging and travel procedures. The policy also answers questions
concerning reimbursement procedures.
City Credit Card Policy: The purpose of this policy is to provide a credit card to the City Administrator,
Department Directors and select employees for the convenience of purchasing materials and paying for
Council or employee conference, workshop, or training expenses. The department credit card, a purchase
order, or City check are to be used for expenses m excess of $50. Any personal reimbursement for items in
excess of $50 must have prior approval by the employee's supervisor. Staff is requesting the use of City
credit for several reasons:
1. The process of reimbursement of businesses expenses can take several weeks and some employees
do not have credit available to carry them for that length of time.
2 Employees may be receiving some type of benefit (airline miles, cash back, gift certificates) by
charging large business expenses on their personal card this may create an issue with the State
Auditor
3. It is easier to track business expenditures through the use of a City account.
Staff has extensively researched the content of these policies and has sent them to the City Attorney and
Auditor for examination and comment. All parties agree that they legally meet requirements and offer
solid procedures for employees to follow.
SUMMARY
Staff requests that Council review the draft pohcies. Changes will be included and brought forth to the
regular Council meeting on April 18, 2006.
2
Policy: CITY CREDIT CARD
Section:
Approved by: City Council
Page: 1 of 2
Purpose
Policy A department may request a credit card for select employees
when there is a demonstrable efficiency to be gained by doing
such. One card will be assigned to each department. The City
Administrator will review and approve each request for adding
authorized users of that account Each department will be charged
the annual membership fee and associated late fees, if any, for
each credit card. The Finance Department should be notified when
any changes occur to a cardholder's status.
Card Security
The purpose of this policy is to provide a credit card to the City
Administrator, Department Directors and select employees for the
convenience of purchasing materials and paying for Council or
employee conference, workshop, or training expenses. The
department credit card, a purchase order, or City check are to be
used for expenses in excess of $50. Any personal reimbursement
for items in excess of $50 must have prior approval by the
employee's supervisor.
Personal purchases are not allowed at any time. A cardholder who
makes unauthorized purchases or carelessly uses the credit card
shall be liable for the total dollar amount of such unauthorized
purchases plus any administrative fee charges by the issuing
company in connection with the misuse. Violation of this policy will
lead to the removal of the user on the department credit card and
disciplinary action.
1. It is the Cardholder's responsibility to safeguard the credit card
and account number to the same degree that a Cardholder
safeguards his /her personal credit information.
2. If the card in lost or stolen, the Cardholder shall immediately
notify the issuing company and Finance Director.
3 Prior to separation from the City of Rosemount the Cardholder
shall surrender the credit card and current credit card
purchases to his /her supervisor.
Procedures
1. All purchases must be made by the cardholder. No other
person is authorized to use that card
2. The cardholder immediately prepares a credit card purchase
form, attaches the purchase receipt, assigns the appropriate
encoding and Department Director's signature, and submits to
Accounts Payable.
3. Accounts Payable will receive the monthly bill and reconcile
with the credit card purchase forms.
4. Payment will be made at the time of billing.
TO: Jeff May, Finance Director
FROM:
The following employee is authorized to be issued a City of Rosemount Credit Card for the department
indicated
Full Name (print):
Sample Signature for Record:
Title:
City of Rosemount
Work Phone:
REQUEST FOR CITY ISSUED CREDIT CARD
(City Administrator Signature)
(Abbreviated to 24 characters or less, including spaces)
Department
Statement Mailing Address:
(Cardholder Name)
(City, State, ZIP code)
Home Phone: (required to aid in fraud prevention efforts)
•wilding Name and Department)
(Street Address)
Daily and Single Purchase Limit will be $1499.00
Monthly billing limit (per billing cycle) will be $5000 unless it is requested to be higher by
the supervisor.
I have read and understand the City Credit Card Policy (Cardholder Signature) Date
Signature of Department Director Date
Policy: TRAVEL AND CONFERENCE REIMBURSEMENT
Section:
Approved by: City Council
Page: 1 of 3
Purpose
The purpose of this policy is to provide guidelines and procedures
to be used when employees are reimbursed for travel or
conference /workshop /training expenses.
Applicability This policy is applicable to City employees and elected officials.
Elected officials' out -of -state travel must also be in compliance with
the Elected Official Out -of -State Travel Policy.
Policy Meals and Incidental Expenses Per Diem
Employees may be reimbursed by the City of Rosemount for
meals and incidental expenses incurred for the ordinary and
necessary expenses of traveling away from home for their job. A
per diem allowance provides an employee money in advance of
travel for payment of meals and incidental allowable expenses.
Per diem allowances must be approved by the employee's
supervisor in advance of the travel.
Employees are entitled to a per diem allowance anytime they are
in travel status and authorized lodging costs are incurred.
Specifically, per diem covers expenses for breakfast, lunch,
dinner, and related tips, taxes, and other incidentals Maximum per
diem rates are prescribed for daily reimbursement of meals and
incidental expenses incurred during official travel above and
beyond lodging and transportation. City credit cards should not be
used for items covered under the per diem.
As detailed below, per diem rates vary according to locality. A six
tier per diem rate system has been established by the General
Services Administration (GSA) The listed per diem rates are
available by state at www.qsa.qov under Per Diem Rate The
column to use is identified as M &lE Rate. A standard per -day rate
applies to all locations not specifically listed or encompassed by
the boundary definition of a listed point.
Per Diem Rate
$39
$44
$49
$54
$59
$64
Breakfast
7
8
9
10
11
12
Lunch
11
12
13
15
16
18
Dinner
18
21
24
26
29
31
Incidentals
3
3
3
3
3
3
When one or more meals are furnished at no cost (e.g., included in
conference registration fee) to the employee, the per diem rate is
reduced by a predetermined amount This is based on the six -tier
per diem rate system that has been established by the GSA.
Questions regarding appropriate per diem rates should be directed
to the Finance Director or Assistant City Administrator.
Expenses incurred by a spouse or guest attending a conference
with an employee must be paid by the employee.
Lodging Lodging must be reserved in advance through
the use of a department credit card, purchase order, or City check.
The City will only cover the lodging expense of single occupancy
and at the discounted hotel rate offered by the conference
sponsor If an employee's spouse or guest shares lodging, the
employee shall be required to pay for expenses beyond the single
rate for the room. The City will cover lodging expenses from the
night preceding a conference through the night immediately
following such event. Exceptions to lodging procedures due to
availability, location, or overall cost savings may be authorized by
the employee's supervisor.
Transportation
Airline The actual cost for transportation is paid by the
City through its department credit card or a City check. Air travel is
limited to coach or economy fares when such service is available.
Automobile If employees use their own personal vehicle,
they will be reimbursed for the amount allowed by the IRS
Guidelines. This amount will automatically be adjusted as the IRS
Guidelines change. Please contact the Finance Department for the
current rate. Mileage will be reimbursed for the distance traveled
that is in excess of the distance normally traveled to and from the
workplace. Parking fees will be reimbursed for their actual amount.
Other transportation costs for business purposes such as taxi
fares, bus fares, and airport transfers will be reimbursed
Reimbursement
National
Conferences for
Exempt
Employees
Other
Rental Cars Rental cars may be reimbursed if they are
necessary for transportation to and from the conference
Employees will not be reimbursed for rental cars used for personal
use such as sightseeing Rental cars must be an economy -sized
car Approval from the employee's supervisor or the City
Administrator must be obtained prior to renting a vehicle for the
expense to be eligible for reimbursement
Complete a Request for Employee Reimbursement form and
attach any receipts for transportation and /or parking expenses and
other allowable expenses incurred during the conference. After
supervisor approval, submit the completed form to the Finance
Department. Receipts must provide detail for the items purchased.
In the event that a receipt can't be obtained, the expense must be
approved by the City Administrator. Credit card receipts listing a
"total amount" will not be accepted.
A per diem allowance will not be provided when the period of
official travel is less than 24 hours and does not require lodging. In
the instance where attending a conference or training falls into this
category, an employee may request allowable meal expenses be
reimbursement up to the per diem rate A detailed receipt of this
expense must be attached to a Request for Employee
Reimbursement form. Prior to the conference or training session,
employees should talk to their supervisor regarding allowable
expenses.
Alcohol is not an eligible expense for reimbursement.
Approval for national conference reimbursement must be made,
in advance, by the City Administrator.
Recreational expenses, such as golf and tennis, will ordinarily not
be reimbursed except when the activity is part of the overall
conference fee.
Premiums for travel insurance or air insurance are not
reimbursable.
Any questions of interpretation of this policy will be decided by the
City Administrator.